Yuanyuan Chen *
October 20, 2005
Abstract：This paper assesses the contribution of the agricultural and industrial income for the rise of rural household income inequality in China by counterfactual decomposition techniques. Using the Chinese Household Income Project data in 1988 and 1995, I find that the rise in inequality reflected both the stagnant development of agriculture and the rural industrialization. Most of the rise inequality was accounted for spatial inequality, the increase of which reflected growing unevenly regional development of industrialization.
pdf Download
* Author's Email Address: ychen@imf.org
I am grateful to Peter Gottschalk, Author Lewbel, Donald Cox, Shang-jin Wei and all participants in the seminar at Boston College Economics Department for helpful guidance and comments. All errors are mine.